Bundle: Managerial Accounting, Loose-leaf Version, 14th - Book Only
14th Edition
ISBN: 9781337541398
Author: Carl Warren; James M. Reeve; Jonathan Duchac
Publisher: Cengage Learning
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Chapter 14, Problem 9E
A(1)
To determine
Compute accounts receivable turnover ratio and number of days’ sales in receivables.
A(2)
To determine
Compute number of days’ sales in receivables.
B)
To determine
Provide conclusion about accounts receivables and credit policies.
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The following data are taken from or calculated from the financial statements:
Average accounts receivable (net)
Sales on account
a. Assuming that credit terms on all sales are n/45, determine for each year (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Round intermediate calculations to whole numbers and final answers to two decimal
places.
1. The accounts receivable turnover:
Current Year
Preceding Year
2. The number of days' sales in receivables: Assume a 365-day year.
Current Year
days
Current Year Preceding Year
$123,000
950,000
$95,000
825,000
Preceding Year
days
b. Comment on any significant trends revealed by the data.
Sales during the current year, indicating a(n) trend. The accounts receivable turnover has
collected within the 45-day period. Likewise, the number of days' sales in receivables indicates a(n)
. Based on credit terms of n/45, the current year turnover indicates that
trend.
receivables are not being
The numerator in calculating the accounts receivable turnover is
a.
average accounts receivable
b.
accounts receivable at year-end
c.
sales
d.
total assets
The following data are taken from the financial statements of Colby Company.
Accounts receivable (net), end of year
Net sales on account
Terms for all sales are 1/10, n/45
Accounts Receivable turnover
Average collection period
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4,300,000
2022
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2021
What conclusions about the management of accounts receivable can be drawn from the accounts receivable turnover and the average
collections period.
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$540,000
4,000,000
2021
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Chapter 14 Solutions
Bundle: Managerial Accounting, Loose-leaf Version, 14th - Book Only
Ch. 14 - Prob. 1DQCh. 14 - What is the advantage of using comparative...Ch. 14 - Prob. 3DQCh. 14 - Prob. 4DQCh. 14 - Prob. 5DQCh. 14 - What do the following data, taken from a...Ch. 14 - Prob. 7DQCh. 14 - Prob. 8DQCh. 14 - Prob. 9DQCh. 14 - Prob. 10DQ
Ch. 14 - Prob. 1BECh. 14 - Prob. 2BECh. 14 - Prob. 3BECh. 14 - Prob. 4BECh. 14 - Prob. 5BECh. 14 - Prob. 6BECh. 14 - Prob. 7BECh. 14 - Prob. 8BECh. 14 - Prob. 9BECh. 14 - Prob. 10BECh. 14 - Prob. 11BECh. 14 - Prob. 1ECh. 14 - Prob. 2ECh. 14 - Prob. 3ECh. 14 - Prob. 4ECh. 14 - Prob. 5ECh. 14 - Prob. 6ECh. 14 - Prob. 7ECh. 14 - Current position analysis The bond indenture for...Ch. 14 - Prob. 9ECh. 14 - Accounts receivable analysis Xavier Stores Company...Ch. 14 - Prob. 11ECh. 14 - Prob. 12ECh. 14 - Ratio of liabilities to stockholders equity and...Ch. 14 - Prob. 14ECh. 14 - Prob. 15ECh. 14 - Prob. 16ECh. 14 - Prob. 17ECh. 14 - Prob. 18ECh. 14 - Prob. 19ECh. 14 - Prob. 20ECh. 14 - Prob. 21ECh. 14 - Prob. 22ECh. 14 - Prob. 23ECh. 14 - Prob. 24ECh. 14 - Prob. 25ECh. 14 - Comprehensive income Anson Industries, Inc.,...Ch. 14 - Prob. 1PACh. 14 - Prob. 2PACh. 14 - Prob. 3PACh. 14 - Measures of liquidity, solvency, and profitability...Ch. 14 - Prob. 5PACh. 14 - Prob. 1PBCh. 14 - Prob. 2PBCh. 14 - Prob. 3PBCh. 14 - Prob. 4PBCh. 14 - Prob. 5PBCh. 14 - Prob. 1FSACh. 14 - Prob. 1ADMCh. 14 - Prob. 2ADMCh. 14 - Prob. 3ADMCh. 14 - Prob. 1TIFCh. 14 - Prob. 3TIF
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